Answer
Find out the what is the minimum simple interest rate Maggie needs to reach her goal .
To proof
Formula
\(Simple\ interest = \frac{principle\times rate\times time}{100}\)
As given
Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years.
put all the values in the formula
\(4000 = \frac{14100\times rate\times 8}{100}\)
Solving
\(rate = \frac{4000\times 100}{14100\times8}\)
solving the above
\(rate = \frac{400000}{112800}\)
rate =3.55% (approx)
the minimum simple interest rate Maggie needs to reach her goal is 3.55% .
Option (b) is correct .
Hence proved
